OD6 - phase 2 sampling program underway on US critical mineral project

Our US critical minerals Investment OD6 Metals (ASX: OD6) just put out an exploration update on its Fluorspar Project in Nevada.

Phase 1 sampling is now complete with assays pending from ~320 soil samples + ~40 stream sediment samples.

AND

A phase 2 mapping/sampling is nearing completion across the ~8km strike zone OD6 identified previously.

(source)

These two sampling programs are the first systematic modern exploration program on OD6’s project in ~60 years.

Fingers crossed we see all of those historic results get extended and a bigger system is uncovered when OD6 go drilling later this year.

Remembering that when OD6 first picked up the project, the only thing we knew was that the Fluorspar occurrences were limited to previously mined open pits:

(source)

Now with some geophysics and sampling, the theory is it could be part of a much bigger system:

(source)

With this second phase of sampling we are especially looking forward to:

• Channel sampling at Horseshoe Pit and Mammoth (the two prospects where the ultra-high grade results have come from so far)
• Mapping across the other prospects - Big Jim, Spar, Jumbo, Rocket and North Horseshoe
• Mapping/sampling along the 1.1km Horseshoe-Jumbo Corridor

(source)

We also note OD6 has also kicked off preliminary metallurgical testwork on its project.

(good for getting a better handle on how to process the ore early).

This parts helps to validate how OD6’s fluorspar would actually be processed and at this stage it will be looking looking at:

• Optical sorting
• Crushing and grinding
• Preliminary flotation testwork

Why do we think this matters so early on?

Because OD6 recently put out ultra-high grade channel sampling results (60-75% fluorspar) which could open the door to producing a Direct Shippable Ore (DSO).

This is a pathway that would require minimal processing, but should OD6 demonstrate flotation upgrading to AcidSpar quality (>97% fluorspar), this would open up many more options.

For context:

AcidSpar is the higher-value product used in hydrofluoric acid, AI semiconductor chip etching, batteries, nuclear fuel and aerospace/defence,

MetSpar is 60%+ and used in steelmaking at this grade, and when refined into the more pure 97%+ fluorspar is called metspar at this high purity level.

(source)

We covered all of this in our most recent OD6 note here: OD6 announces ultra high grade fluorspar in USA - high enough for direct shipping ore?

Quick recap on why we are Invested in OD6

• First mover ASX exposure to US fluorspar. As far as we know, OD6 is still the only ASX listed company with direct fluorspar exposure in the United States.
• The US has zero domestic fluorspar production and imports 100% of what it consumes (~400,000 metric tonnes per year). China controls ~60% of global supply.
• Fluorspar is on the US Critical Minerals list - used in missile systems, AI semiconductor chips, military batteries, nuclear fuel, jet fuel and radar systems.
• One of the nine highest shortfall risk materials for the US military in a major conflict scenario.
• The project sits ~300km by road from the US Strategic Minerals Reserve at Hawthorne, Nevada.
• Recent precedent - the US Pentagon awarded another fluorspar developer (Ares Strategic Mining) a multi-year contract worth up to ~US$250M.
• ASX peer Tivan (capped at ~$719M) has a fluorspar resource at 8.3% CaF2, OD6 is sampling at many multiples of that grade in surface outcrop, with a market cap a fraction of Tivan’s.
• OD6 also has the Splinter Rock clay-hosted rare earths project in WA as a “free option” on top of the fluorspar story.

(source)

For more, see our recent deep dive: OD6 announces ultra high grade fluorspar in USA - high enough for direct shipping ore?

What's next for OD6?

🔄Complete the acquisition of its US fluorspar project

We want to see OD6 complete acquisition of the US fluorspar project, this will give it full unencumbered access to help it progress the asset.

Milestones:

• 🔄 Due diligence process completed
• 🔲 Option to acquire exercised
• 🔲 Acquisition completed

🔄 Target generation for US fluorspar project

We want to see OD6 sample in and around the old workings on its project, run some geophysics and generate high priority drill targets ahead of its maiden drilling program.

Milestones:

• ✅ Rock chips
• ✅ Channel sampling
• 🔄 Soil sampling
• 🔲 Geophysics
• 🔲 Drill targets generated

Strategic / Government Engagement for fluorspar in the US

• 🔲 Engage with US Department of War, Department of Energy, or DLA regarding domestic fluorspar supply
• 🔲 Explore strategic partnerships or offtake discussions